Iraq Adopts FOB Sales Strategy Amid Ongoing US-Iran Tensions

Iraq is adjusting its oil sales strategy to maintain exports despite ongoing US-Iran tensions. The country's oil ministry spokesperson, Salim al-Rikabi, said Iraq will use a Free on Board (FOB) method to sell crude directly at southern ports, transferring transit risks to buyers.

This move aims to sustain maritime exports and recover volumes that dropped sharply after the US-Iran conflict in February. Iraq's oil production capacity is around 4.5 million barrels per day (bpd), but it has been forced to curb production due to shipping disruptions at the Strait of Hormuz.

Rikabi stated that crude exports have steadily increased, with an average of 2.2 million bpd in August, compared to earlier lows of 200,000 bpd. The country is also exploring new export channels through Turkey and Syria, including a plan to lay a pipeline for a maximum capacity of one million bpd.